How does the Greek economic crisis affect your travel insurance?

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How does the Greek economic crisis affect your travel insurance?

By Vicky Anscombeon 22 June 2015

**Please note - the FCO no longer advise taking euros in cash to cover the entire duration of your stay; however there are still restrictions on some banking services in Greece. Click here for more information.**

The economic crisis in Greece may be causing holidaymakers a lot of worry - what does it mean for British tourists who expect to go on holiday to Greece this summer?

Greeks have been withdrawing billions of euros from the banks, and the fear is that it could lead to the imposition of limits on how much people there - including tourists - can withdraw.

ABTA and Post Office Travel Money have both advised tourists to take enough cash in euros to see them through their holidays.

Here's ABTA's statement in full:

There has been recent articles in the UK press on Greece and the country's current financial situation.

Speculation about a possible Greece debt default, and potential exit from the Euro, has been current for some time, but at present remains just speculation.

Any changes would be highly unlikely to happen overnight, any switch to a new currency would take time and Euros would likely be accepted in the interim.

Holidaymakers heading out to Greece this summer are advised to take some cash in Euros with them as well as other payment methods (credit/debit cards) so that they are covered for all situations.

We would also advise them, as we would with any destination, to take out travel insurance as soon as they book their holiday to provide protection should they need to cancel.

We do not anticipate that there will be any need for tour operators to rebook their customers to a different destination. At present we have no indication that holidaymakers will be disrupted however, as with all destination matters, we will continue to monitor the situation and work with our Members on any developments. This is an unusual situation but the industry is experienced in handling unusual situations.

Worried about how the crisis affects your travel insurance? Here's the latest advice from travel experts.

What are the highest and lowest cash limits that you cover on an average policy?

Travel insurance policies normally range from £100-£500, with most covering around £250-£300. At Columbus Direct, we have an average cash limit of up to £300.

Although the FCO are warning people to stay away from any demonstrations, if someone were to get caught up in one and were injured or robbed, would they be covered?

As long as they did not actively seek to join the demonstrations, then it is likely that the underwriters would take a sympathetic approach, but if it was a large demonstration then it should be quite easy to avoid.

If there are strikes next week and you cannot fly out to your pre-booked holiday to Greece, would you be covered?

Cover is provided by the travel delay section of a policy for unexpected strikes. As there are none announced yet, any existing policies holders with cover that includes travel delay should be covered.

If your departure is delayed by a certain number of hours (normally 12 or more), then you can claim the travel delay benefit. This is often an amount worth around £20-£30 per person, per full 12 hours of delay. Many policies will also include abandonment cover; this means if you are delayed departing for more than 12 hours you can abandon the holiday and claim for the costs.

What if you can’t get home as there are no flights and you have to stay in Greece longer than planned – are you covered for the extra expenditure?

This is not covered by travel insurance. You can claim for the Travel Delay benefit, but the airline/tour operator will be expected to find you accommodation if you cannot return as planned. Your travel insurance should automatically extend to cover you while you are stuck outside the UK, e.g. for unexpected medical costs, but you should notify your insurer as soon as possible.

Will your travel insurance cover your losses if you decide to cancel?

Firstly, there's no need to panic; an Association of British Insurers has said: "Those who have their summer holidays planned in Greece remain covered by their travel insurance, in line with the terms and conditions."

However, this changes if the FCO change their stance and advise against travel. If this happens, you won't be covered if you still decide to head to Greece, but you would be entitled to a refund - either from your travel agent, tour operator, or insurance company.

EDIT EDIT EDIT: The good news is that Greece continues to be a great bet for bargain hunters, according to the latest Post Office Travel Money resort research. The strength of sterling means families changing £500 into euros will get the equivalent of £65 more to spend compared with a year ago. And prices in resort islands such as Crete and Corfu are down by more than 13 per cent this year anyway - which means a meal in Crete with drinks will be almost £6 cheaper, and a bottle of suncream will be £3.32 less than it was last year.